With tax season well underway, many Texas residents may be anxiously awaiting their refunds. However, it is unlikely that most of those individuals who receive refunds will use that money for anything adventurous or out of the ordinary. In fact, some people may even be awaiting their refunds in order to file for Chapter 7 bankruptcy.
Because numerous individuals face financial struggles on a daily basis, few taxpayers actually use their refunds to treat themselves. More often, people put their funds toward medical bills or daily expenses that they need to catch up on. In fact, only 16 percent of individuals who participated in a related survey indicated that they were planning to use their tax refunds to make a significant purchase or splurge on something unnecessary.
Chapter 7 bankruptcy filings have also been increasing during this time of year. Because there are fees associated with starting the bankruptcy process, many individuals may be waiting for their refunds in order to pay those fees and other associated expenses so that they can start the process of getting their finances back on track. While many people may still look forward to obtaining their tax refunds, it may not be for fun-filled reasons.
If Texas residents are considering moving forward with Chapter 7 bankruptcy themselves, they may also need their tax refunds to get the process started. Another step that could help get the ball rolling is to gain reliable information on this option and its long-term benefits. Consulting with bankruptcy attorneys can help concerned individuals determine their best courses of action for addressing their debt.
Source: nerdwallet.com, "Why Tax Refunds Aren't Fun Anymore", Liz Weston, March 1, 2018